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Forex - AUD/USD drops over 1% on Australia GDP

Published 12/04/2013, 02:54 AM
AUD/USD
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EUR/AUD
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Investing.com - The Australian dollar dropped over 1% on Wednesday, to trade near three-month lows after the release of disappointing economic growth data out of Australia, while expectations for the Federal Reserve to soon begin tapering its stimulus program supported the greenback.

AUD/USD hit 0.9033 during late Asian trade, the pair's lowest since September 3; the pair subsequently consolidated at 0.9038, tumbling 1.07%.

The pair was likely to find support at 0.8972, the low of September 3 and resistance at 0.9141, the session high.

Official data showed that Australia's gross domestic product rose 0.6% in the third quarter, less than the expected 0.8% expansion, after an upwardly revised 0.7% rise in the three months to June.

On a yearly basis, Australia's economy grew 2.3%, compared to expectations for a 2.6% expansion.

Meanwhile, the greenback remained supported after the Institute for Supply Management said Monday that manufacturing activity in the U.S. expanded at the fastest rate since April 2011 in November, fuelling optimism over the economic recovery.

The Aussie was also lower against the euro, with EUR/AUD advancing 0.94% to 1.5014.

Later in the day, the U.S. was to release the ADP report on private sector job creation, as well as data on new home sales and the trade balance. In addition, the Institute of Supply Management was to release its services PMI.


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